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Home My WebLink About04-03-09 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 3, 2009 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Members Absent: Ms. Marcia Jones, President Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Jeff Gibney, Executive Director Ms. Ann Kolata, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor’s Office Ms. Sara Stewart Uzelac Mr. Mark Seaman, Prism Ms. Jamie Loo, South Bend Tribune Mr. Nate Bosch, The Troyer Group Ms. Rita Kopala Ms. Linda Wolfson, Community Forum for Economic Dev 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, March 20, 2009. CM Upon a motion by Ms. King, seconded by Mr. OMMISSION APPROVED THE INUTES OF THE RMF,M20, EGULAR EETING OF RIDAY ARCH Downes and unanimously carried, the Commission 2009 approved the Minutes of the Regular Meeting of Friday, March 20, 2009. South Bend Redevelopment Commission Regular Meeting –April 3, 2009 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted April 3, 2009 for approval. 305 FUND SBCDA BOND Rieth Riley Construction, Inc. 203,770.90 Michigan St. From Wayne St. N to Colfax 324 AIRPORT AEDA Studebaker Corridor Study Ken Herceg & Associates, Inc. 18,414.86 Indiana Michigan Power 162.57 1010 N Bendix Dr. Unit Clinic Tri County News 60.84 Coveleski Neighborhood Housing Block DHA Survey Work Mind Area 10,216.00 Abonmarche Consultants 1,020.00 Mayflower Rd. Trunk Sanitary Sewer Study Mayflower Rd. Trunk Sanitary Sewer Study Abonmarche 900.00 DHA Transpo's Survey 8,037.00 SBD Reprographics Oliver Park & Ignition Park Housing 89.36 South Bend Parks & Recreation Dept 1,400.00 Tree Removed Wightman Petrie 1,950.00 Phase II Environmental Site Assessment 420 FUND TIF DISTRICT-SBCDA GENERAL Wightman Petrie 110.00 Demolition of Gates Chevy World Building Ampco System Parking 1,946.30 St. Joseph St. & 225 S Main St. Parking Lot AT & T LaSalle Hotel Security Phone 29.78 CB Richard 250.35 Property CSB - City of SB Rose Pest Solution LaSalle Hotel 93.00 CFH Landscape Services 1,197.50 Clean up Fat Daddy's, Hill St. & Colfax Ave Watterud Inc. 395.00 420 S. Williams 422 FUND WEST WASHINGTON 10.41 520 W Wayne St Indiana Michiana Power 433 FUND REDEVELOPMENT ADMIN GENERAL Baker & Daniels Legal Services 840.00 435 FUND DOUGLAS ROAD Baker & Daniels 420.00 Legal Services 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Group, Inc. 8,000.00 Management Fee $ 259,313.87 2 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 3. APPROVAL OF CLAIMS (CONT.) CC Upon a motion by Mr. Downes, seconded by Mr. Alford OMMISSION APPROVED THE LAIMS A3,2009, SUBMITTED PRIL AND ORDERED THE and unanimously carried, the Commission approved the CHECKS TO BE RELEASED Claims submitted April 3, 2009, and ordered checks to be released. 4. COMMUNICATIONS C A. Communication from LaSalle Square Steering OMMUNICATION FROM LASALLE SQUARE STEERING COMMITTEE Committee Mr. Inks noted that the Commission received a communication dated April 3, 2009 from the LaSalle Square Steering Committee. He read the letter into the record. Dear Redevelopment Commission Members, We are writing to request money be allocated to begin infrastructure improvements for LaSalle Square as suggested in the LaSalle Square Area Redevelopment Plan (LSARP). On page 56 of the plan, one of the first actions recommended to be undertaken in the first five years is; “Extend the principal street grid from the surrounding neighborhood into LaSalle Square, providing better connection to the existing urban fabric;” As part of the Airport Economic Development Area, LaSalle Square has seen a flurry of activity prior to and since the adoption of the plan to redevelop the area. Developments to date include: ? A collaborative effort between Memorial Hospital and St. Joseph Regional Medical Center to operate the Bendix Physicians offices directly across from the square ? The return of the Urban Garden Market this year providing residents with access to fresh produce 3 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 4. COMMUNICATIONS (CONT.) A. continued… and other items ? The planned construction of a four-story senior citizen apartment complex ? A 3,000 square foot expansion of the LaSalle Branch of the St. Joseph County Public Library Additionally, the City of South Bend has acquired one of three properties on Bendix Drive identified as the area best suited for retail and commercial development. Hopefully 2009 will see the acquisition of the remaining two parcels which will allow marketing of the area to begin in earnest. Given these developments, the LaSalle Square Steering Committee desires to keep the momentum moving forward to redevelop LaSalle Square and believes that is best accomplished by initiating the process to improve the infrastructure as the plan recommends. Therefore, we respectfully request the Redevelopment Commission allocate the funds necessary to begin the process of extending the principal street grid into the square. Sincerely, The LaSalle Square Steering Committee Mr. Varner asked if additional infrastructure for LaSalle Square is planned for the Commission agenda this year. Mr. Inks responded that there is none in the 2009 AEDA budget for LaSalle Square. There is funding set aside for the continued acquisition of commercial properties on Bendix, but there were funds reserved in future years for infrastructure. Staff can review this and see if it makes sense to make changes to the budget. 4 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 5. OLD BUSINESS TOB There was no Old Business. HERE WAS NO LD USINESS 6. NEW BUSINESS A. South Bend Central Development Area (1) Third Amendment to Lease for 127 Michigan St. (LePeep Restaurant) Ms. Jennings noted that LePeep of South Bend, Inc. has executed its Third Amendment to Lease with the Redevelopment Commission. The lease officially began November 1, 2008 and will terminate October 31, 2012. The base rent is $2,000 per month until October 31, 2009. Effective November 1, 2009 the tenant space rent will increase to $2,500 per month until the expiration of the lease term, October 31, 2012. In addition, LePeep will pay 6% of gross revenue that exceeds $6,000. These are the same terms that the Commission approved previously. CT Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE HIRD AL127MS. MENDMENT TO EASE FOR ICHIGAN T Ms. King and unanimously carried, the (LPR) EEEP ESTAURANT Commission approved the Third Amendment to Lease for 127 Michigan St. (LePeep Restaurant) (2) Commercial Property Management and Leasing Agreement for Redevelopment Retail (2009-2010) Ms. Jennings noted that CB Richard Ellis was awarded the bid for management of Redevelopment retail properties. An agreement began February 1, 2009 and terminates January 1, 2010. CB Richard Ellis’ compensation for management of the 5 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (2) continued… properties is as follows: 117 E. Wayne St., $200 per month or 5% of the gross revenues, whichever is greater; 118-131 S. Michigan St. is $625 per month or $5% of the gross revenues collected, whichever is greater; Leighton Plaza Courtyard at 130 S. Main St. will be a flat $75 per month. Staff recommends approval of the agreement. Mr. Varner asked if the agreement stipulates a fee for the leasing agent. Ms. Jennings responded that it does, at 8%. CC Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE OMMERCIAL PML ROPERTY ANAGEMENT AND EASING Mr. Alford and unanimously carried, the ARR GREEMENT FOR EDEVELOPMENT ETAIL Commission approved the Commercial (2009-2010) Property Management and Leasing Agreement for Redevelopment Retail (2009- 2010) B. Airport Economic Development Area (1) Resolution No. 2573 related to acquisition of property in the AEDA. (1500 blk S. Franklin) Mr. Relos noted that Resolution No. 2573 is related to property located northeast and adjacent to 411 W. Indiana. This property was added to the Airport Economic Development Area Acquisition List by Resolution No. 2456 on June 13, 2008. This approximately ¾-acre vacant lot is needed for the future site of the Transpo transportation center. The lot is owned by Engel Ventures. It lot is almost fully covered 6 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued… with a concrete slab and has an 8-foot metal fence around two sides. It is currently being used by Waste Management, though not owned by that company. Resolution No. 2573 sets the offering price for the property at $42,537.50, the average of two independent appraisals. CRN.2573 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA.(1500S.F) BLK RANKLIN Commission approved Resolution No. 2573 related to acquisition of property in the AEDA. (1500 blk S. Franklin) (2) Resolution No. 2574 approving and accepting a counter offer for the acquisition of property in the AEDA. (1500 blk S. Franklin) Mr. Relos noted that Engel Ventures has submitted a counter offer in the amount of $50,000. After researching the value of the property and the depreciated value of its improvements, staff feels the counter offer is reasonable and recommends accepting it. CRN.2574 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND ACCEPTING A COUNTER OFFER Ms. King and unanimously carried, the FOR THE ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2574 AEDA.(1500S.F) BLK RANKLIN approving and accepting a counter offer for the acquisition of property in the AEDA. (1500 blk S. Franklin) (3) Resolution No. 2575 related to acquisition of property in the AEDA. (1200 blk S. Franklin) 7 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued… Mr. Inks asked that item 6.B.(3) be tabled. CRN.2575 Upon a motion by Ms. King, seconded by OMMISSION TABLED ESOLUTION O A17,2009 UNTIL THE PRIL MEETING Mr. Alford and unanimously carried, the Commission tabled Resolution No. 2575 until the April 17, 2009 meeting. (4) Resolution No. 2576 approving and accepting a counter offer for the acquisition of property in the AEDA. (1200 blk S. Franklin) Mr. Inks asked that item 6.B.(4) be tabled. CRN.2576 Upon a motion by Ms. King, seconded by OMMISSION TABLED ESOLUTION O A17,2009 UNTIL THE PRIL MEETING Mr. Alford and unanimously carried, the Commission tabled Resolution No. 2576 until the April 17, 2009 meeting. (5) Real Estate Purchase and Site Work Agreement with the 1100 Corporation and the City of South Bend. Ms. Kolata noted that the property to be purchased by the Commission is 1100 Prairie Avenue, the former Studebaker Foundry. The building contains approximately 450,000 square feet and is located on 19.19 acres. The property owner is The 1100 Corporation – Don Nuner is the principal of this corporation. Underground Pipe & Valve, Inc. is the tenant. Terms of Purchase: ? Commission will purchase the property for $1,625,000 with a credit of $129,560 8 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (5) continued… ? for a site in the Oliver Industrial Park. The net purchase price will be $1,495,440. ? The 1100 Corporation will purchase 6.32 acres in the Oliver Industrial Park at a price of $20,500 per acre. ? Commission agrees to pay costs associated with ground compaction of the Oliver Industrial Park site. ? The real estate closing on both properties will take place within two days of all conditions being met. The closing is to take place by July 1, 2009. ? Underground Pipe & Valve will receive $205,000 in relocation payments once the move to the new location is complete. ? The existing building will be leased back to The 1100 Corporation for $1 per month until the move to the new building is completed. ? A Groundwater Monitoring Access Agreement (Exhibit G) will allow the Commission to monitor existing groundwater wells in the future. ? The 1100 Corporation will not seek real property tax abatement for the initial 36,000 square foot building at the Oliver Industrial Park site. ? The Commission agrees to provide crushed stone to be used as base for the storage yard area that will be asphalted. There is a large amount of crushed concrete at the former stamping plant site that will be provided. This should be sufficient but the Agreement provides that the Commission will pay for any 9 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (5) continued… ? additional crushed stone that is necessary for the base. ? The 1100 Corporation will be allowed to excavate sand from an adjacent lot which is where the City’s expansion of the existing retention pond will take place. ? Construction of the new building is to begin no later than August 1, 2009 and qualify for a Certificate of Completion within 12 months. Description of Project : ? The 1100 Corporation or a successor real estate holding company will construct a 36,000 s.f. building in the Oliver Industrial Park that will be leased to Underground Pipe and Valve, Inc. The building will be a single level pre- engineered steel building with two sections: a basic shop area and an office section. The majority of the shop area, 23,197 square feet, will be heated and cooled with the remaining shop area unheated. The office area will consist of 7,270 square feet. There will be 14 private offices with reception area, conference, workroom, break room, and restroom uses. An asphalt parking area will surround all four sides of the building with the area to the north capable of handling heavy truck parking. The entire site will be fenced. Decorative masonry pillars will be located on the south fence line. ? The estimated cost of the new construction is just over $2,000,000. 10 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (5) continued… ? Underground Pipe & Valve, Inc. has been in business since 1977. The company is a distributor of pipes, valves, and lift station equipment. Other product lines include; automatic meter reading systems, line stops, PVC water and sewer pipe, fire hydrants, water meters, manhole frames and covers, back flow preventers, couplings and grinders. The company has distribution centers in Fort Wayne, Kalamazoo and Schererville. It has fifty employees, 27 of whom work at the Prairie Avenue location. Ms. Kolata noted that the purchase price of $1,625,000 was negotiated and includes compensation for the approximately five acres of heavy duty paving, additional fencing with masonry pillars on the south side of the property and landscaping that the City required for the storage yard. In addition, they have agreed to not request tax abatement for the construction of the 36,000 square foot building. A map showing the current and new location of Underground Pipe & Valve is attached to this report. Funds from the U.S. Department of Housing and Urban Development for the Studebaker/Oliver Development Project will be used for property acquisition and relocation. The Section 108 Loan has funds budgeted for this acquisition and relocation. Additional funds from HUD’s Economic Development Initiative grant will be used for site prep at the Oliver site. 11 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (5) continued… The staff recommends approval of the Agreement. Underground Pipe & Valve is a strong, locally owned business. This Agreement allows them to relocate to a nearby location in order to continue to serve their customers and provide tax base and jobs to the City of South Bend. Purchase of the former foundry will complete the Commission’s acquisition of former Studebaker buildings south of Sample Street. It will further the goals of City Plan by redeveloping a brownfield site and retaining an existing business within South Bend. Ms. Kolata noted that the Agreement the Commissioners have read is not in final form. Language concerning the environmental condition of the Oliver site is still being fine tuned. She asked that the Commission approve the agreement in concept. CR Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED IN CONCEPT THE EAL EPSW STATE URCHASE AND ITE ORK Ms. King and unanimously carried, the A1100C, GREEMENT WITH ORPORATION SUBJECT Commission approved in concept the Real TO THE FINAL DOCUMENT BEING APPROVED BY Estate Purchase and Site Work Agreement LEGAL COUNSEL with 1100 Corporation, subject to the final document being approved by legal counsel. C. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. 12 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 D. South Side Development Area There was no business in the South Side Development Area. E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Ratification of Temporary Use Agreements Mr. Inks noted that staff has approved the request from Aids Ministries/Aids Assist to use the Wayne Street Garage for its annual Rooftop Rendezvous June 19, June 24 and Aug 21, 2009. That item needs to be ratified. In addition, Mr. Inks introduced Sara Uzelac for a presentation on her request to use Commission owned property at the west end of LaSalle Square for a community garden for a one year period. The property is roughly seven acres. Ms. Uzelac is coordinating the use of seventeen community gardens in the community this summer. Mr. Inks noted that the LaSalle Square Steering Committee has provided a letter of support. Mr. Inks noted that Ms. Uzelac has asked the Commission to provide materials in the amount costing $2,000 to bring water to the site. The Water Dept will provide the labor to enable that. Ms. King asked if the Commission would incur any liability with this use. Mr. Inks responded that any time the Commission allows its property to be used, there are documents signed protecting the 13 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 6. NEW BUSINESS (CONT.) G. Ratification of Temporary Use Agreement Commission from liability. Ms. Spivey asked whether the Commission would have any liability in regards to pesticides used, etc. Ms. Uzelac responded that pesticides will not be used. CAM/A Upon a motion by Mr. Downes, seconded by Ms. OMMISSION RATIFIED IDS INISTRIESIDS AWSG SSIST USE OF THE AYNE TREET ARAGE King and unanimously carried, the Commission RRJ FOR ITS ANNUAL OOFTOP ENDEZVOUS UNE ratified Aids Ministries/Aids Assist’s use of the 19,J24A21,2009.T UNE AND UG HE Wayne Street Garage for its annual Rooftop C OMMISSION ALSO APPROVED THE USE OF Rendezvous June 19, June 24 and Aug 21, 2009. LSS PROPERTY AT AALLE QUARE FOR A The Commission also approved the use of property COMMUNITY GARDEN AND AUTHORIZED $2,000 EXPENDING UP TO FOR BRINGING WATER at LaSalle Square for a community garden and TO THE SITE authorized expending up to $2,000 for bringing water to the site. H. Other (1) Amended Resolution No. 2572 setting procedures for contracts for Property Related Services. Mr. Inks noted that the Commission passed a similar resolution earlier in the year, authorizing staff to approve certain types of routine contracts. The amendment adds David Relos to the list of staff that can approve such contracts. CRN.2572 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O SETTING PROCEDURES FOR CONTRACTS FOR Mr. Downes and unanimously carried, the PRS ROPERTY ELATED ERVICES Commission approved Resolution No. 2572 setting procedures for contracts for Property Related Services. 14 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 7. PROGRESS REPORTS PR Mr. Inks reported that the Common Council announced ROGRESS EPORTS that the Council would again take up the tax abatement ordinance for review this year. Mr. Inks gave an update on TIF receipts. He noted that the County has not released any of the TIF funds collected in 2008. There has been no indication as to when they will be received. In the interim, staff has restricted all spending to what it has in cash. He said staff is not obligating ourselves beyond the city’s cash balances. He wanted the Commission to be aware that in the downtown, that will affect some projects. There is a significant cash balance in the Airport account, so there should be no affect there. Mr. Inks also reported that Press Ganey has sold its land. The final closing amount was $406,469.80. 8. NEXT COMMISSION MEETING NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING scheduled for Friday, April 17, 2009 at 10:00 a.m. 9. ADJOURNMENT A There being no further business to come before the DJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:55 a.m. 15 South Bend Redevelopment Commission Regular Meeting –April 3, 2009 EXECUTIVE SESSION April 3, 2009 The South Bend Redevelopment Commission met in Executive Session on Friday, April 3, 2009, at 9:15 a.m. The meeting was held in Room 1200 County-City Building, 227 West Jefferson, South Bend, Indiana, for the purposes specified in I.C. 5-14-1.5-6.1(b)(2)(D). Commissioner’s Present: David Varner, Vice President; Nancy King, Secretary, Greg Downes, Donald Alford, Stephanie Spivey. Others Present: Jeff Gibney, Executive Director, Community & Economic Development, Don Inks, Director, Economic Development, David Relos, Jennifer Laurent, and Ann Kolata. The Commission certifies that no topic was discussed other than the subject matter specified in the Public Notice. The Executive Session was adjourned at 10:00 a.m. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT ______________________________ Signature ______________________________ Printed Name and Title South Bend Redevelopment Commission 16